Recordpub.com

Marhofer closing in Stow is a 'shock' Owner: Dealership having "exceptional' year in vehicle sales

August 6, 2009

 

By Mike Lesko

Stow Sentry Associate Editor

STOW — Ron Marhofer could not believe his eyes.

“I read it two or three times. I was shocked and surprised,” he said Wednesday, after being informed in a letter by General Motors that Marhofer Chevrolet in Stow would lose its Chevrolet franchise next year.

Marhofer said the letter is confidential, but it said GM would not renew his franchise agreement as of October 2010.

The company has been in business in Stow since 1933 and is Summit County’s oldest Chevrolet dealer.

“This is very emotional for me,” Marhofer said. “We have other dealerships, but this one was having an exceptional year.”

He said another 20 or so 2010 models are expected to arrive, “probably in the next few weeks,” because they were previously ordered.

After that, no more new cars will be arriving at the dealership at 3423 Darrow Road, Stow.

Marhofer Chevrolet employs about 80 full- and part-time workers.

Marhofer said he informed his employees “a couple weeks ago.”

“They were surprised,” he said. “We’re like a family with a lot of long-term employees.”

Stow Mayor Karen Fritschel said it is a very difficult time for Marhofer — “particularly because he cares so much for his employees. He told me that over and over again.”

She called the decision by GM “very disheartening.”

“Why would you close that dealership?” Fritschel said. “It is doing so well. It doesn’t make any sense.”

Marhofer asked that question to General Motors officials.

“The answer I was given was, ‘We can’t tell you,’” he said.

Fritschel described Marhofer as “a great supporter of the city.”

“He contributes to many community and charity events,” she said. “He does it quietly. It would be a real loss not to have him a part of the city.”

Visitors at the dealership can sign petitions voicing their displeasure. Also, Marhofer is urging people to contact government officials or the president of General Motors.

Marhofer hopes to get a helping hand from legislation by U.S. Rep. Steven LaTourette, of Bainbridge Township.

LaTourette’s amendment to the annual Financial Services spending bill would force GM and Chrysler to restore dealer franchises.

The bill — including the amendment — was approved July 16 by the U.S. House of Representatives, said Deborah Setliff, of LaTourette’s office.

Setliff said Wednesday that the bill is awaiting consideration by the U.S. Senate, which will not act on it until after the August recess. She said letters will be sent out soon by members of Congress asking Senators to support the bill.

In case that help does not materialize, Marhofer said he is considering what to do with the Stow location.

“I’m hoping that Ron Marhofer will be able to find another use for that land so he can stay in the city in some capacity,” Fritschel said.

In the last two years, Marhofer said his was the highest-selling Chevrolet dealership in Summit County.

He said new-car sales are up 57 percent so far in 2009, while the market nationwide is down more than 40 percent.

Marhofer is president of the Ron Marhofer Auto Family, which includes a used-car auto mall in Akron, a Lincoln-Mercury and Mitsubishi dealership in Cuyahoga Falls, two Hyundai dealerships in Cuyahoga Falls and Green, and two Saturn dealerships in Belden Village and Chapel Hill.

Marhofer said the Stow dealership was opened by his uncle, Chester “Chet” Marhofer, in 1919.

Marhofer’s father, John “Jack” Marhofer, took over in the 1920s.

Ron Marhofer has been the owner since 1975.

Marhofer was asked what his next step is.

“We’re open for business,” he said. “We have plenty of cars to sell and a busy service department.

“And we’re exploring other options when we’re no longer a Chevrolet dealer,” he added.

He declined to say what those options are.